Tax Structuring

Getting the structure right at outset will maximise after-tax returns. We believe in simplicity not complexity. There are many pitfalls which, with early advice, can easily be avoided. Tax may not be the only driver – you may also have concerns about asset protection for your family.

Choosing the right ownership structure at the very outset of your business is important, for taxation, commercial, and legal reasons. Your choice can have very significant implications, at a time of potentially acute financial constraints, in terms of the management of early tax flows. But ownership structure needs to be kept under regular review throughout the business’s entire life cycle because it is quite likely to change for a host of good reasons.

Getting this right, to suit the needs and circumstances of both you and your business, can save an enormous amount of tax longer term, avoid a whole lot of commercial risk and remove a significant amount of anxiety from your working life.

In the UK alone, there are a whole host of options for what you use as your business “vehicle”. These include personal ownership, joint personal ownership, general partnership, Limited Liability Partnership (LLP), limited company, trust ownership, pension fund, and even overseas options in special circumstances.

These all have widely differing features, benefits and tax implications, so taking advice, and planning your structure with experienced assistance, are highly desirable.

You may be an investor or a developer and this could drive the conversation on structuring in very different ways. You may be investing alone or through a joint venture – there is a lot to consider and get right.

Assisting start-ups and organising growing, and mature Real Estate investor businesses is “bread and butter” advisory work for our tax professionals within the Harold Sharp Proptech team